Invoice and credit note processing

[Former Member]

Hello all,

I have got a query with respect to transaction MRBR (Remove Block on invoice). The process that we follow is:

1) When AP clerk enters invoice, he enters the invoice with a 'R' block. This blocks the invoice from getting paid.

2) Every evening there is a background job scheduled with transaction MRBR. What this job does is removes the 'R' block from the invoice if it has got a corresponding GR.

3) This invoice then appears in the payment run and is paid off.

The problem with this process is when the credit notes are raised on account. We link the credit notes and invoices by copying the document number of invoice in the 'invoice reference' field while entering the credit note. The 'R' block also gets copied onto the credit note (if the invoice has the block). Transction MRBR runs overnight and removes the block from the invocie (if it has a corresponding GR) and the invoice becomes free for payment. However there is no parameter in the program to remove the block from the credit note as well. What eventually happens is that the invoice becomes free for payment, the credit note remains 'R' blocked and hence does not appear in the payment run to offset the invoice and the invoice gets paid off even though it had a credit note.

Is anyone aware of how to remove the 'R' block from the credit note or if there is a better process to work with invoice and credit notes.

Thanks for all your help

Regards

Keyur

[Former Member]

Hi Karthik,

Thanks for the reply. All our credit notes are entered via MIRO and still the block is not removed by MRBR.

Regards

Keyur

[Former Member]

Hi

Can you give me some more details about the credit note. What is the nature of the credit note? Is it full reversal of the invoice or is it for partial amount eg. like discount?

If it is for a partial amount, then you should use "Subsequent Credit" instead of "Credit Memo".

Regards,

Karthik

[Former Member]

Hi Karthik,

Thanks for your reply. The 'R' block automatically gets copied onto the credit note if it has reference to an invoice which has a 'R' block. So as per your suggestion, suppose I dont use 'R' block functionality but do however use any other automatic block functionality, if the invoice has any block, it will get copied to the credit note.

Thanks

Keyur

[Former Member]

If you post credit note thru MIRO, with reference to Invoice (by selecting MIRO document) then both blocks may be removed by your program automatically.. check this

[Former Member]

Hi,

I also think that there is no need for putting a R block in the credit note at all.

The process should be like below:

1. Invoice posted before GR - Invoice should be automatically blocked if the tolerance keys are set up properly (transaction code OMR6). I am not sure why you have to put the R block manually.

2. Post credit note - do not put any kind of block. Make sure that you are referencing the credit note to the earlier posted invoice or the the relevant PO line item.

3. MRBR matches and releases the invoice.

4. When you run F110, it should automatically clear the invoice, credit note and make payment for the rest.